Economy

Corporate sector to see 10.6% salary hikes in 2015: Aon Hewitt 

Our Bureau New Delhi | Updated on February 19, 2015 Published on February 19, 2015

The real estate and infrastructure sectors are expected to offer the biggest hike at around 12.2 per cent.

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Top performers to get 1.6 times more than average performers

Corporate India employees can expect salary hikes of 10.6 per cent this year, said Aon Hewitt, a human capital and management consulting  firm, on Thursday.

Top performers are expected to get 1.6 times the salary hike awarded to average performers.

Slight improvement

The projected increase shows a slight improvement over hikes in the past three years, according to the 19{+t}{+h} edition of Aon Hewitt’s Annual Salary Increase Survey in India. Anandorup Ghose, rewards consulting practice leader at Aon Hewitt India, said: “There is significant improvement in business confidence across companies, which, however, is not reflecting in salaries. Companies across industries are continuing to take a cautious stance and are not going for aggressive pay increases.” 

Realty, infra on top

The real estate and infrastructure sectors are expected to offer the biggest hike of around 12.2 per cent, followed by life sciences and media at 12 per cent and 11.8 per cent, respectively. Services such as retail (9.5 per cent), financial institutions (9.4 per cent), and hospitality (9.8 per cent), are at the lower end of the projections. The survey said top performers are expected to get 1.6 times the salary increase awarded to average performers, with the differentiation higher in sectors such as banking and other financial services (BFSI), ITeS, telecom as well as FMCG and pharmaceuticals.

Performance matters

Companies are also not hesitating to differentiate sharply on the basis of performance, as the percentage of employees with a top performance rating has dropped by close to 30 per cent in the past five years, the study says.

Attrition woes

Attrition continued to be broadly at par with 2013, at 18.1 per cent, but key talent attrition witnessed a 31 per cent jump. The firm analysed data from over 580 companies for the study.

Published on February 19, 2015
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